§ 73.5008 Definitions applicable for designated entity provisions.
(a) Scope. The definitions in this section apply to 47 CFR 73.5007,
unless otherwise specified in that section.
(b) A medium of mass communications means a daily newspaper; a cable
television system; or a license or construction permit for a television
broadcast station, an AM or FM broadcast station, or a direct broadcast
satellite transponder.
(c)(1) An attributable interest in a winning bidder or in a medium of
mass communications shall be determined in accordance with § 73.3555
and Note 2 to § 73.3555. In addition, any interest held by an
individual or entity with an equity and/or debt interest(s) in a
winning bidder shall be attributed to that winning bidder for purposes
of determining its eligibility for the new entrant bidding credit, if
the equity (including all stockholdings, whether voting or nonvoting,
common or preferred) and debt interest or interests, in the aggregate,
exceed thirty-three (33) percent of the total asset value (defined as
the aggregate of all equity plus all debt) of the winning bidder.
(2) Notwithstanding paragraph (c)(1) of this section, where the winning
bidder is an eligible entity, the combined equity and debt of the
interest holder in the winning bidder may exceed the 33 percent
threshold therein without triggering attribution, provided that:
(i) The combined equity and debt of the interest holder in the winning
bidder is less than 50 percent, or
(ii) The total debt of the interest holder in the winning bidder does
not exceed 80 percent of the asset value of the winning bidder and the
interest holder does not hold any equity interest, option, or promise
to acquire an equity interest in the winning bidder or any related
entity. For purposes of paragraph (c)(2) of this section, an “eligible
entity” shall include any entity that qualifies as a small business
under the Small Business Administration's size standards for its
industry grouping, as set forth in 13 CFR 121.201, at the time the
transaction is approved by the FCC, and holds:
(A) 30 percent or more of the stock or partnership interests and more
than 50 percent of the voting power of the corporation or partnership
that will own the media outlet; or
(B) 15 percent or more of the stock or partnership interests and more
than 50 percent of the voting power of the corporation or partnership
that will own the media outlet, provided that no other person or entity
owns or controls more than 25 percent of the outstanding stock or
partnership interests; or
(C) More than 50 percent of the voting power of the corporation that
will own the media outlet if such corporation is a publicly traded
company.
[ 63 FR 48629 , Sept. 11, 1998, as amended at 64 FR 24527 , May 7, 1999;
64 FR 44858 , Aug. 18, 1999; 69 FR 72045 , Dec. 10, 2004; 73 FR 28370 ,
May 16, 2008; 75 FR 27200 , May 14, 2010]
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